The Non-Domestic Rates (Liability for Unoccupied Properties) (Scotland) Bill - Business and Regulatory Impact Assessment

Section 2: Engagement and information gathering

Engagement approach

The aim of the Bill is to deliver the original policy intention of section 19 of the 2020 Act which was to provide for the devolution of EPR and charging of rates on unoccupied properties, subject to any local relief local authorities may choose to put in place. The devolution of EPR was part of an agreement with the Scottish Green Party and took place on 1 April 2023.

No external consultation has been carried out in advance of the Bill being introduced given the market sensitivity and the need to bring forward remedial legislation as quickly as possible. The Bill will provide a valid legal basis for rates to be levied on the owners of unoccupied property, as is understood by local authorities and ratepayers, and as has been operated in practice by local authorities since 1 April 2023.

Internal SG engagement/ engagement with wider Public Sector

Internal SG engagement

Within Scottish Government: the Local Government Finance Team and Local Government Analytical Team within the Local Government Directorate and Scottish Government Legal Directorate (SGLD), were closely engaged in the development of this policy. There was also engagement with Directorate for Financial Management and DG Exchequer, Strategy and Performance.

UK/ Devolved Administrations

No engagement has been undertaken with the UK Government and devolved administrations, and none is required. NDR are a local tax with Scottish Government setting rates, reliefs, and exemptions in Scotland.

Wider Public Sector

No engagement was undertaken with the wider public sector before the Bill was introduced. This is because the aim of the Bill is to give effect to the original intention when the 2020 Act was enacted and as currently understood by local authorities and ratepayers. It will provide a statutory basis for the established position with retroactive effect from 1 April 2023 - that liability for rates in respect of unoccupied properties falls upon the owner, subject to any reliefs that local authorities may choose to put in place under existing discretionary powers.

International

No international engagement has been undertaken, and none is required. This issue is domestic, and no international effects or effects on trade have been identified.

Business / Third Sector engagement

No engagement was carried out with businesses or the third sector prior to the introduction of the Bill given the need to bring forward remedial legislation as quickly as possible, and given the Bill is intended to bring the law into alignment with the original intention when the 2020 Act was enacted and as currently understood by local authorities and ratepayers, and operated in practice by local authorities since 1 April 2023.

Public consultation

No public consultation has been carried out given the nature of the issue and that the Bill is intended to create a legal basis for the original policy intent of section 19 of the Non-Domestic Rates (Scotland) Act 2020, namely for rates to be levied on the owners of unoccupied properties and for local authorities to be able to introduce local EPR should they want to do so.